How to Setup a Company in Romania

How to Setup a Company in Romania – Complete Guide

Romania has become one of the fastest-growing destinations for entrepreneurs looking to start a business in Eastern Europe. With its strategic location in the European Union, competitive labor costs, skilled workforce, and favorable tax structure, setting up a company in Romania offers immense opportunities. Whether you are a local entrepreneur or a foreign investor, Romania’s business-friendly environment provides a clear pathway to company formation.

This guide will walk you through the step-by-step process of setting up a company in Romania, the types of companies you can register, legal requirements, costs, and benefits.

1. Why Setup a Company in Romania?

Before starting the registration process, it’s essential to understand why Romania is an attractive business hub.

Key Advantages:

EU Market Access – As an EU member, Romania provides access to a market of over 450 million people.
Low Corporate Tax Rates – Standard corporate tax is 16%, and micro-enterprises may benefit from even lower rates.
Skilled Workforce – A highly educated, multilingual workforce, especially in IT, engineering, and manufacturing sectors.
Cost-Effective Operations – Affordable business setup and operational costs compared to Western Europe.
Government Incentives – Various grants and support programs for foreign investors.

2. Types of Companies in Romania

Before you register your company, choose the business structure that suits your needs.

Most Common Company Types:

SRL (Societate cu Răspundere Limitată) – Similar to a Limited Liability Company (LLC). Ideal for small to medium businesses. Minimum share capital: €1.
SA (Societate pe Acțiuni) – Joint-stock company for large-scale businesses with higher capital requirements.
Branch Office – For foreign companies expanding into Romania.
Representative Office – For promotional and non-commercial activities.
Sole Proprietorship (PFA) – For individuals running small-scale operations.

3. Step-by-Step Process to Setup a Company in Romania

Here’s the complete procedure for registering a company in Romania.

Step 1: Choose Your Company Name

Select a unique name and reserve it with the National Trade Register Office (ONRC).
The name must not be similar to existing registered companies.

Step 2: Decide on the Legal Form

Choose between SRL, SA, Branch Office, etc.
Consider your business scale, tax implications, and management structure.

Step 3: Prepare Required Documents

You will typically need:

Articles of Association
Identification documents for shareholders and directors
Proof of registered office address
Proof of share capital deposit
Signature specimens

Step 4: Deposit Share Capital

For an SRL, the minimum share capital is €1, which must be deposited in a Romanian bank account.
Obtain proof of deposit.

Step 5: Register with the Trade Register

Submit all documents to the National Trade Register Office.
Registration usually takes 3–5 working days.

Step 6: Obtain Tax Registration

Apply for a Tax Identification Number (CUI) from the National Agency for Fiscal Administration (ANAF).

Step 7: Register for VAT (If Required)

Mandatory if your annual turnover exceeds €88,500.
Can be done at the time of company registration.

Step 8: Open a Business Bank Account

Required for handling company transactions.
Many banks in Romania offer accounts for foreign-owned companies.

Step 9: Register for Social Security and Employment

If hiring employees, register with the social security authorities.

4. Timeline for Company Registration in Romania

Document Preparation – 2 to 3 days
Name Reservation – 1 day
Trade Register Processing – 3 to 5 days
Tax and VAT Registration – 1 to 3 days Total Timeframe: 7–10 working days

5. Post-Registration Compliance

Once your company is registered, you must:

Maintain accounting records
Submit annual financial statements
File tax returns
Renew any specific licenses or permits
Comply with labor laws if hiring employees

6. Benefits for Foreign Investors

Foreign investors enjoy the same rights as Romanian nationals when setting up a company. Additionally:

No restrictions on foreign shareholding
Double Taxation Avoidance Agreements (DTAA) with over 80 countries
Investment incentives in IT, manufacturing, and renewable energy sectors

7. Common Challenges and How to Overcome Them

Language Barrier – Hire a local consultant or translator.
Bureaucracy – Work with experienced company formation agents.
Tax Compliance – Engage a professional accountant to avoid penalties.

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